$Vista Outdoor (VSTO.US)$In the past 5 years, revenue contin...

Revenue growth slowed to 4.6% in the first three quarters of 2023. Operating profit fell sharply by 19% due to excessive growth in costs and expenses, and net profit also fell 21% due to rapid increases in interest expenses. This is very confusing. After all, revenue seems to have increased a lot in the past two years.

The balance ratio declined continuously after reaching a high of 68.3% in 2020, falling to 53.1% in 2022, but growing to 57.3% in 2023Q3.

The balance sheet shows that the amount and growth rate of accounts receivable and inventory appear to be relatively normal, with inventory growing slightly faster in the first three quarters of 2023.

Goodwill grew from 401 million to 942 million in 2022. It should have been a major acquisition. Goodwill soared to 1.59 billion in 2023Q3, with net assets exceeding 1.42 billion yuan, and long-term loans also increased to 1,078 billion yuan.

Currently, the price-earnings ratio is only 3.3, and the price-earnings ratio is TTM 3.9. It is understandable that the market gave such a low valuation, because whether the short-term growth brought about by the acquisition can continue to be tested, so it is more appropriate to stay on the sidelines.